Customs officials deny money laundering and under-invoicing claims in luxury vehicle imports

Customs officials have rejected allegations of money laundering and under-invoicing in the post-clearance audit of luxury vehicle imports. 

Chief Collector of Customs Jamil Nasir stated that these claims are unfounded and clarified that the imports are being processed according to established procedures, which were in place before the introduction of the new faceless assessment system.

It emerged in media reports, citing the audit covering the period from December 2024 to March 2025, that a 2023 Toyota Land Cruiser, typically worth millions, was cleared for customs at an astonishingly low value of Rs 17,635 through the Faceless Customs Assessment (FCA) system. Of 1,335 Goods Declarations examined by auditors, the discrepancy between declared and actual duties amounted to over Rs 1 million, pointing to widespread under-invoicing. The total declared import value for these vehicles was Rs 670 million, while the actual assessed value was Rs 7.25 billion, resulting in a shortfall of Rs 17.5 billion in tax payments.

However, speaking alongside Collector East Tayyaba Kayani and Collector West Shafiq, Nasir explained that no post-clearance audit report has been received yet, and any analysis will be provided once the report is available. He acknowledged that the post-clearance audit process currently faces challenges, including a shortage of personnel, and stressed the need to strengthen this system.

He further clarified that the Import Policy Order 2022 prohibits the commercial import of old and used cars, with exceptions made only for overseas Pakistanis importing vehicles through personal, baggage, or gift schemes. 

He emphasized that all imports must comply with duties and taxes, which should be paid through the importer’s bank account.

The Chief Collector also highlighted that the Central Appraising Unit now operates in two shifts, from 8 am to 12 am, which has contributed to faster cargo clearance at ports. The faceless assessment system now clears between 1,500 and 2,000 Goods Declarations (GDs) daily, and the Central Examination Unit is working to reduce delays in the process.